USA To Enforce Strict AML Rules For Cryptocurrencies, FinCEN Director Says

The cryptocurrency market has spiked the interest from the media and regulators over the last several years. Its actual lack of established regulations leads to numerous alleged criminal activities, and the U.S. government is reportedly preparing to act against potential money-laundering schemes.

The director of the Financial Crimes Enforcement Network (FinCEN), Kenneth Blanco, has recently said that the country is looking for a way to introduce more strict enforcements on several cryptocurrency-related types of businesses.

It’s called the “travel rule,” and it would still require all crypto exchanges to verify the identities of each customer (a process known as KYC – know your customer). However, they would also need to identify the original parties and beneficiaries of transfers for over $3,000, and that information will be provided to counterparties, if applicable.

Blanco spoke last Friday at a conference in New York, where he added:

“It [travel rule] applies to…